High unemployment, falling prices and hefty debt levels haven't dissuaded U.S. investors from taking a bite out of equities in Europe, according to a growing chorus of analysts and business figures.
Carlo Ferro, the chief financial officer (CFO) of STMicroelectronics, told that he had spoken to a slew of global investors who appeared to be focused on snapping up stocks that are competitively valued when compared to other developed markets.
The European Central Bank (ECB) has decided to pump more liquidity into the euro zone economy, which has helped the region's common currency to slide increasingly lower against the U.S. dollar. This has given Europe's exporters a boost, and both the German DAX index and the U.K.'s FTSE 100 have already registered all-time highs this year.
The euro's move lower was "very welcome," Ferro said, and had helped businesses gain a "competitive positioning" in the global economy.
Jeremy Stretch, head of FX Strategy at CIBC, told that an improving growth picture and the launch of the ECB's quantitative easing program had painted an optimistic scenario for European stock markets.
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